1031 Exchange for Short-Term Rental Properties

Short-term Rental Property 1031 Exchange

Secure 1031 Exchange Solutions for Short-Term Rental Investors

Short-term rental properties—such as vacation homes and professionally managed rental units—offer strong income potential but can also introduce volatility, operational complexity, and significant tax exposure upon sale. A 1031 exchange allows short-term rental owners to defer capital gains taxes while repositioning equity into more stable or better-aligned real estate assets. HUB 1031 Inc. safeguards every exchange with regulated escrow custody, segregated accounts, and institutional-level oversight to protect investor capital throughout the process.

Tailored Support for Short-Term Rental Assets

Short-term rental exchanges often involve mixed-use considerations, evolving local regulations, and variable income performance. HUB 1031 supports exchanges involving:

  • Vacation rental homes

  • Short-term rental condominiums

  • Portfolio-based short-term rental holdings

  • Properties transitioning from short-term to long-term income use

Our role is to ensure exchange proceeds are handled securely and that each step of the process aligns with IRS requirements—without exposing funds to unnecessary risk or delay.

Why Short-Term Rental Investors Choose HUB 1031

Short-term rental properties often experience rapid appreciation, making fund security especially critical during a 1031 exchange.

  • Exchange proceeds are held in segregated custodial accounts through Guaranty Escrow, Inc.

  • Custody is subject to DFPI oversight and annual independent audits

  • All staff undergo DOJ background checks and fingerprinting

  • Funds are never pooled, reinvested, or commingled

  • Security standards exceed typical practices within the unregulated 1031 exchange industry

This structure allows short-term rental investors to proceed with confidence, even during fast-moving transactions.

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Preserve Equity Through Tax Deferral

Short-term rental properties often generate taxable gains driven by appreciation and accelerated depreciation. A properly structured 1031 exchange allows investors to defer capital gains taxes, keeping more equity available for reinvestment rather than tax payment.

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Reposition Into More Stable Income Assets

Many short-term rental owners use 1031 exchanges to transition into other qualifying real estate assets, such as:

  • Long-term residential rentals

  • Multifamily or mixed-use properties

  • Commercial or self-storage investments

  • Professionally managed income assets

This strategy can reduce exposure to seasonal demand and regulatory uncertainty while preserving tax efficiency.

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Improve Operational Efficiency

Short-term rentals often require active management, frequent turnover, and ongoing maintenance. A 1031 exchange allows investors to reposition equity into properties with:

  • Lower management intensity

  • More predictable cash flow

  • Reduced regulatory oversight

This shift can significantly improve long-term operational efficiency.

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Simplify Complex Rental Portfolios

Investors holding multiple short-term rental units across different markets may face growing administrative and compliance challenges. A 1031 exchange provides a pathway to consolidate holdings into fewer, more efficient assets—while maintaining IRS compliance and tax deferral benefits.

Start Your Short-Term Rental 1031 Exchange With Confidence

Short-term rental exchanges require careful planning, strict adherence to timelines, and secure handling of funds. HUB 1031 Inc. delivers all three. With licensed escrow custody, segregated accounts, and transparent oversight, we help investors transition out of short-term rentals with confidence and clarity.

Contact HUB 1031 Inc. at (424) 340-6254 to discuss your short-term rental 1031 exchange and protect the equity you’ve built.

1031 Exchange Short-term Rental

Free Consultation

HUB 1031 Inc. Premium Exchange Services

2100 Pacific Coast Highway
Hermosa Beach, CA 90254

Phone: (424) 322-9317

8:30 am to 5:30 pm Monday through Friday.
We are also available for weekend appointments.

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